SGX RegCo may roll back rules

This article is more than 12 months old

The new independent body to oversee stock market regulations may review the requirement for listed companies to file quarterly reports and minimum trading price rules.

Chairman Tan Cheng Han told a briefing yesterday that the Singapore Exchange Regulation or RegCo will not be afraid to re-assess sacred cows in the rules framework.

Prof Tan, who will lead a five-person board, said he intends to bring "a pair of fresh eyes" to the process.

"Let us ask some questions: Are the rules in place today still necessary given changing conditions?

"Are they merely in place because they are intended to meet particular challenges that no longer exist?"

He noted that many stock exchanges are prone to "chasing shadows" - implementing tough and disruptive rules to address risks that have a low chance of causing problems.

The RegCo board, he said, will be open to rolling back the rules that are redundant or inflict more compliance cost than benefits.

The RegCo was mooted a year ago and officially established earlier this month. It is now preparing to take over all of SGX's regulatory functions by August.

This means the RegCo will oversee matters such as maintaining and updating listing and trading rules, investigating rule breaches and enforcing penalties.